Cardano price settles at a key level ahead of the Midnight launch: will it rebound?

Cardano price remains stuck in a technical bear market and is trading near its lowest point since November last year as traders await Monday’s Midnight mainnet launch and as more exchanges confirm support for the NIGHT token. ADA was trading at $0.4185, far below its year-to-date peak at $1.3202 and still well off its all-time high near $3.

Midnight launch draws investor attention

The Midnight network – under development for years – aims to introduce new utility to the Cardano ecosystem. Developers launched the NIGHT token last week as the first Cardano Native Asset, with trading set to begin on Monday. Exchanges such as Bybit, Gate, and OKX have confirmed listings.

The associated NIGHT airdrop will allow participants from the Glacier airdrop and scavenger mine events to claim their tokens. While some recipients may immediately sell, others could hold depending on expectations for the network’s future traction.

Charles Hoskinson and the Cardano team believe Midnight will attract new developers and expand the network’s total value locked. However, some analysts remain skeptical, noting that developers may end up building on Midnight rather than Cardano itself. Other recent L1 and L2 projects—such as Plasma, Monad, and Keeta – have also struggled to gain sustained momentum after launch.

Technical analysis points to continued weakness

ADA’s weekly chart shows a persistent downtrend from this year’s high at $1.3202 to a recent low of $0.400. The token has broken below the key support level at $0.5113, which acted as support in January, April, and June. It now trades directly on an ascending trendline connecting major swing lows dating back to June 2023.

ADA is also below both the 50-week and 100-week exponential moving averages, while the Percentage Price Oscillator (PPO) remains below the zero line – signals consistent with bearish momentum.

If ADA breaks beneath the ascending trendline, the next major support lies near $0.2760, the August 2023 low. A decisive move above $0.5113 would invalidate the bearish setup and open the door for a broader recovery.